Four ways a foreclosure will impact you in New York

Four ways a foreclosure will impact you in New York

There is no doubt foreclosure will impact you. Besides the obvious strain and emotional impact the situation can have on your family and personal relationships, foreclosure can also devastate your finances. From the clothes you wear to the car you drive—or even where you reside or work—it will have a residual effect on your life for years to come. LMJT Properties is here to listen to you and can address any questions you may have about your specific circumstances and what you can do to avoid these ramifications. Just call (516) 402-3777. By having a better understanding of what lies ahead, you will be better equipped to take immediate action against the negative consequences of foreclosure from the start.

Your future self will thank you for taking the time to learn more about your options during the process. We’ll cover four ways that a foreclosure will impact you in New York.

Four ways a foreclosure will impact you in Raleigh

Denied 

If a foreclosure in New York or Long Island appears on your credit reports, you will be regarded as an unfavorable risk. This is because of the negative impact it has on your credit score. Once this is recorded in your credit history, it will have an effect on your general ability to make purchases. When a person has poor credit, their applications for credit, such as credit cards, loans, or mortgages, are frequently denied. Any financial institution that is willing to work with customers who have poor credit is ultimately going to subject those customers to exorbitant interest rates and annual fees, both of which can be avoided by customers who have good credit. Additionally, it could be the reason that employment opportunities are not presented to you for consideration.

Financial Loss

One of the most compelling arguments in favor of home ownership is the accumulation of equity over time, which takes place concurrently with a decline in the amount of debt owed on the property and an increase in the latter’s market value. It’s possible that you’ll make a profit that’s in the hundreds of thousands of dollars. The amount of equity that you have in your home can be calculated by subtracting the amount that is still owed on the mortgage from the value that your home could bring on the current market. A foreclosure can have a negative impact on your equity, either partially or completely, depending on the specifics of your situation. This can result in a significant financial loss.

Debt

By moving quickly to resolve a pending foreclosure, one can avoid losing their home. You have complete control over the manner in which your home is sold as well as the price at which it is sold. Check your mail before it’s too late to act on what’s inside! Maintain an open line of communication with your lender so that you are aware of what actions they may be prepared to take and how much time you have to change the outcome in your favor. You won’t have any control over the situation after the foreclosure is completed. Even in the event that the sale price of your property in New York is lower than the amount that is still owed on your mortgage, you are still obligated to make payments on this debt. This type of debt is known as a deficiency debt, and it can have a significant impact on both your way of life and your family’s, not to mention the impact it has on your financial plan. Having an additional liability listed on your credit report will not improve your financial situation but will instead contribute to the higher costs associated with having poor credit.

Future Housing 

Foreclosure impacts your housing options in many ways. In general, landlords run credit checks as the first step when interviewing tenants. Naturally, your financial history will make you a higher risk and may cause you to be passed over for more desirable properties. Additionally, your choices in financing will be highly restricted should you wish to purchase another home. Fannie Mae is among the largest in the nation and offers a program with several financial benefits. Should you have gone through foreclosure and sought a mortgage lender, you should be aware that Fannie Mae will require a waiting period of 7 years before you will be eligible under their guidelines.